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At the end of 2020, Majors Furniture Company failed to accrue $65,500 of interest expense...

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Accounting

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At the end of 2020, Majors Furniture Company failed to accrue $65,500 of interest expense that accrued during the last five months of 2020 on bonds payable. The bonds mature in 2032. The discount on the bonds is amortized by the straight line method The following entry was recorded on February 1, 2021, when the semiannual interest was paid 7,500 Interest Expense Discount on bonds payable cash 2.100 70.500 Required: 1-a. Prepare any oumal entries necessary to correct the error as well as any adjusting entry for 2021 related to the situation described. (ignore income taxes) 1-b. Prepare the journal entries that should have been recorded if done correctly to start X 1 Record the entry to correct the error. 2 Record the adjusting entry for interest on Dec. 31, 2021. Credit 1 Record the adjusting entry for interest on Dec. 31, 2020 as it should have been recorded. 2 Record the interest payment on February 1, 2021 as it should have been recorded

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